The shares of Cipla Limited were trading at ₹1.5 lakh down by ₹21.85 or 1.42 per cent on the NSE today at 11 am.
Pharmaceutical major Cipla disclosed a significant GST penalty order from the Principal Commissioner of Central GST Commissionerate, Jaipur on December 2, 2024.
The tax authority has imposed a penalty of ₹10.95 lakh against the company for alleged GST liability irregularities.
According to the company, the penalty relates to actions during fiscal years 2017-18 to 2023-24. The GST authorities allege that Cipla reduced its tax liability by issuing credit notes without confirming the reversal of Input Tax Credit (ITC) at the recipient’s end.
Cipla has strongly contested the order, stating in its filing that the GST demand, interest, and penalty are “arbitrary, unjustified, and not tenable.”
The company plans to file an appeal with the appellate authority and maintains that the order will have no material impact on its financial or operational performance.
The order was originally dated November 25, 2024, and was received by Cipla on December 2, 2024.
